Section 2: Observations from the business community

Introduction

In order to inform the quantitative analysis that had been gathered from the B2022 Business Barometer, a programme of qualitative engagement was undertaken with members of the business community. The participants that took part in these ‘depth’ interviews and roundtables worked for businesses that had either directly won contracts from the Organising Committee, had been an official sponsor or partner for the Games, been involved in supply chain activity related to the Games or finally, were from sectors expected to have benefitted from additional footfall and spend in the region as a result of the events that took place last summer.

“It was fantastic to showcase the region, the buzz was terrific for people that live and work here” –Manufacturing firm with 175 members of staff

While the majority of responses were positive, a small number expressed frustration with the tendering processes for the Games or concern regarding a perceived lack of legacy impact:

“Very disappointed as smaller businesses not able to compete and complete complex tendering processes. Dominated by National Contractors.” - Retail or wholesale firm with 85 members of staff

“There has not been sufficient legacy impact from the Games on the region.” - Services firm with 20 members of staff

A virtual roundtable was held on the 7th June 2023 and participants included a number of businesses from the hospitality industry in the city, these included:

• Paul Bunce, Commercial Manager, Conference Aston

• Janey Bingham, Commercial Director, Holiday Inn

• Tracey Stephenson, Managing Director, Staying Cool

• Joanne Gray, General Manager, Staybridge

Furthermore, a series of one-to-one interviews took place between 18th June 2023 and Wednesday 5th July with the following participants:

• Suzie Branch-Haddow, Vice Principal of External Development, BMet College

• Abigaile Bromfield, Director, Arup

• Ed Grigg, General Manager, Incorporatewear

• Matthew Hammond, Senior Partner, PWC

• Ruth Griffin, Partner, Gowling

• Charles Brant, Relationship Development Manager, Gowling

• Cathy Gilbert, Director of External Affairs, University of Birmingham

• Helen Toft, Head of Marketing and Communications, University of Birmingham

• Daniel Nikolla, Marketing Manager, Hardy Signs

Transcripts of roundtable discussions and interviews with each of these organisations can be found in the appendix to this report. What follows below is a summary of the main themes highlighted by the various participants.

Key Observations:

Civic Pride and Global Reputation – Virtually all roundtable and interview participants referenced the manner in which the 2022 Commonwealth Games fuelled a sense of civic pride across the wider business community and within their own organisations. In particular, a number of organisations reflected on the positive benefits that were derived from staff members volunteering in various Games related activity. Official statistics released by the Birmingham 2022 Commonwealth Games Organising Committee revealed that 40,000 new jobs and volunteering opportunities had been created by the Games, with 14,000 volunteers participating in a single integrated programme covering all of the delivery partners. Over 7,000 people trained for roles in catering, cleaning and waste and 30,000 hours of social action assignments were created for young people (aged between 16-24), designed to include young people who face barriers iii

“When you ask how [our organisation] benefitted from the Games, I can confidently say that the answer is a great deal of pride.” Suzie Branch-Haddow, Vice Principal of External Development, BMet College

“For us, it was more than just another corporate partnership but something which we felt could create significant positive impact through the enjoyment of a broad range of people based activities.” Matthew Hammond, Senior Partner, PWC

“As a business we had the best ever July and August period by 15% - it was amazing! The perception of the city has gone through the roof”

Tracey Stephenson, Managing Director,

Staying Cool

“The pride we all felt during the Games time was immense. Hosting the squash and hockey on campus created a real party atmosphere. During this time our cultural collections were open, strengthening our ties with local communities as well as those further afield; for instance, the Lapworth Museum had 3500 new visitors over the 11 days of the Games.” Cathy Gilbert, Director of External Relations, University of Birmingham and Helen Toft, Assistant Director, Research Strategy and Services, University of Birmingham.

“The reputation, perception and brand of the city has changed hugely and positively on the international stage.” Matthew Hammond, Senior Partner, PWC

Winning work during and after the Games: a number of the firms interviewed indicated that they had secured work from the Games – either via the official procurement channels or indirectly via supply chain engagement or supplying Games visitors. Many of the firms that had secured work on the Games felt they were now primed to secure more work given the positive exposure they received from their involvement in the Birmingham 2022 Commonwealth Games. As referenced previously, 9% of firms surveyed in the Q2 2023 Quarterly Business Report secured work on the Games (either directly or via supply chain activity).

Official Government data reiterates the economic impact of the Games. By January 2023, the Commonwealth Games had already contributed £870.7 million to the UK economy, with over half of the economic impact generated (£453.7 million) benefitting businesses and communities across the region. A record 1.5 million tickets were sold for Birmingham 2022, the largest multisport event hosted in England in 10 years and more than 5 million people visited Birmingham during the two weeks from 25th July – a 200% increase on the same period in 2021 iv .

“We were a direct beneficiary of being involved in the supply chain. After being successful in our [tender] bid, we were responsible for supplying flags and banners to Sandwell Council and Birmingham City Council which were displayed around the city and region displaying graphics to do with the Games.”

Daniel Nikolla, Marketing Manager, Hardy Signs

“This was not just another piece of legal work, it represented so much more. How seriously we took our involvement in the Games was shown by the fact that our UK CEO, David Fennell, was a key member of the bid team that ultimately were successful in being appointed as Official Legal Advisors for the Birmingham 2022 Commonwealth Games and as a sponsor of the Games.”

Ruth Griffin, Partner, Gowling and Charles Brant, Relationship Development Manager, Gowling

“Winning the Commonwealth Games contract was a real cause for celebration as most of our 85 members of staff are local, so it was a fantastic way for us all to feel included. The delivery of 14,000 plus kit might seem intimidating but what it showed is that we could deliver a major project on a massive scale, on time and in full… You can see the success we are now having on the back of the Games as we have just secured the contract of supplying the uniforms to Subway. The Games were crucial in providing confidence to potential clients that we are serious operators.”

Ed Grigg, General Manager, Incorporatewear

“As a result of the Games we have secured partnerships over a three-year period in tangible contacts.” Paul

Bunce, Commercial Manager, Conference Aston

Partnerships & Collaboration: several firms noted that the level of partnership working and collaboration was the highest that they have ever seen during the Games, and as a result of this collaborative effort, new partnerships were forged which have created wider commercial opportunities.

“[The] Games allowed us to focus around a common cause and a hard deadline. Going beyond the Games we are collaborating [with partners] in other areas of importance for the region, such as the skills gap and sustainability. I think these relationships changed fundamentally during the Games because we all had a common purpose. It has accelerated those relationships with partners by about five years!” Cathy Gilbert, Director of External Relations, University of Birmingham and Helen Toft, Assistant Director, Research Strategy and Services, University of Birmingham.

“For us we continue to develop strong working relationships off the back of B2022 with other sponsors/supporters of the Games, such as the University of Birmingham, PWC, Aston University, Bruntwood and Severn Trent” Ruth Griffin, Partner, Gowling and Charles Brant, Relationship Development Manager, Gowling

“We collaborated closely with leaders from across our clients some of whom were also sponsors to support their work, including the likes of University of Birmingham, Eon and Severn Trent. The collective focus on ESG, social mobility, inclusion and diversity and more were an example of purpose led collaboration.” Matthew Hammond, Senior Partner, PWC

Commitment to legacy: Every roundtable participant and interviewee engaged in this research referenced the importance of harnessing the various legacy opportunities associated with the Birmingham 2022 Commonwealth Games, especially across economic, social and organisational pillars. The feedback also tied into the broader objectives around the Organising Committee’s legacy mission pillars which are reflected in the various programmes which have been set up to embed the long-term legacy of the Games. Areas of focus include learning, creative and cultural participation, jobs and skills, business and tourism, community cohesion, inclusion and pride, volunteering, sustainability and physical wellbeing and social value.

“I think when we talk about legacy there are three different component parts which I want us to focus on- the physical legacy, the community legacy and the organisational legacy. I know we have spoken in depth in terms of organisational legacy; we formed an award-winning public and private partnership which helps bring investment into the city.” Abigaile Bromfield, Director, Arup

“A highlight was hosting businesses at UK House, in our Exchange Building in Centenary Square, which welcomed over 1,000 businesses and investors. We also partnered with the Business and Tourism Programme (BATP) for the region and delivered sessions throughout the week including on Education

Day on the theme of science, business and policy for environmental action.” Cathy Gilbert, Director of External Relations, University of Birmingham and Helen Toft, Assistant Director, Research Strategy and Services, University of Birmingham.

“As part of the legacy, we want to become part of the Youth Charter Community Campus- a model that provides social, culture and economic opportunities for young people across all 6 continents. The aim is to have a global network of campuses. We are also looking to build an inclusive campus at our Sutton Coldfield site for disability sports.” Suzy Branch Haddow, Vice Principal of External Development, BMET

Uncertainty: what happens next? whilst there was, and still is, a great deal of optimism in the aftermath of the Games, some businesses raised that they would be keen to see a commitment to ongoing partnership working across the public and private sectors to ensure that the region maximises the ongoing opportunities established by the Birmingham 2022 Commonwealth Games. Many of the participants welcomed the joined-up approach taken by stakeholders across the region to make the Games such a spectacular success – organisations such as The West Midlands Growth Company, Visit Britain,

Birmingham City Council, Transport for West Midlands and the West Midlands Combined Authority and various Universities and Colleges were all namechecked across different interviews. However, a general sentiment emerged that this level of interaction between different partners will need to be channelled and built upon if we are to further propel the image of the region on the international stage and drive more investment into the region.

“I realise that the Commonwealth Games was a unique, exceptional event to boost our tourism pull, but what is the strategy to build on this?”

Janey Bingham, Commercial Director, Holiday Inn

“Focusing on the forward look we do need to see collaboration with partners moving forward, particularly if we want to enhance the tourism appeal of Birmingham.”

Joanne Gray, General Manager, Staybridge

Section 3: Analysis of Games Impact and Wider Context

This section explores the wider impact of the Games and the context in which they took place, utilising official impact assessments and reports.

1. Attracting Investment:

The Business and Tourism Programme (BATP) has already played a vital part in leveraging the

“Our new owners have invested over £15 million in new systems and a new office refurbishment in Oldbury. The Commonwealth Games was the springboard and now the legacy is for us.”

Ed Grigg, General Manager, Incorporatewear

2022 Commonwealth Games to cultivate positive perceptions of the region on the international stage, with the ultimate aim to drive long term economic benefits across the region. The programme aims to secure more than £650m in new overseas investment into the UK and create an additional £7 million of additional export deals until 2027. The BATP is also expected to play a part in attracting thousands of extra visitors to the region and UK until 2027, which will also play a vital role in increasing visitor spend. The programme is also anticipated to create almost 600 new jobs in the West Midlands v

Ultimately, the BATP will play an important part in driving foreign direct investment (FDI) in the region. Data released by the Department of Business & Trade revealed that across the 2022-23 financial year, the UK had attracted 1,654 projects, an increase of 4% compared to the previous year. Whilst nationally, job creation had fallen by 6.1% in the same time period, this trend was not reflected in our region. The West Midlands saw the highest year on year growth of any region in terms of FDI projects, rising from 143 in 2021-22 to 181 in 2022-23, and the number of jobs created by these projects went up by 48.1% between the two financial years (from 5,571 to 8,252) vi

Of course, much of this was predicated on the success of the Birmingham 2022 Commonwealth Games – the key is now to maintain and build upon this legacy, especially given the long term challenges our region’s exporters have faced. A central pillar of the BATP focusses on driving export activity in our region. In 2019, the Midlands exported £56bn of UK goods, however this value fell by over 10% in 2020 to a figure of £45.6 billion which in itself was five times higher than the national average decline of 2% vii. In addition, the BATP will play a key role in supporting businesses looking to build a presence in the region, helping win event bids and returning visitors to the region.

2. Levelling Up the Region

In February 2022, Michael Gove unveiled the Government’s much vaunted Levelling Up White Paper which set out a plan intended to transform the UK by spreading opportunity and prosperity to all parts of the country. Within Birmingham and the wider city-region, the success of the Commonwealth Games must be used to catalyse a decade of long-term economic growth which will culminate with the arrival of HS2 – in essence, a reconceptualization of the so called ‘golden decade’ of opportunity (as the period between 2009 and 2019 is often referred to). Following the success of the Games, an opportunity exists to further strengthen its ability to attract more investment and further devolved funding – both central pillars of the Levelling Up agenda.

The Games proved that regional and national actors can work together to deliver a world leading event on time and on budget. If anything, this strengthens the image of Birmingham on the international stage and will help attract major events (both sporting and cultural) to the city region – all of which lends itself to driving long term commercial opportunities and greater private sector investment. During the Games, the spotlight shone on the region like never before; not only did millions of people visit the city during the duration of the Games but Birmingham 2022 events had an estimated total global viewership of 834.9 million and over 215 million digital views and 141 million interactions on social media viii

The West Midlands Combined Authority (WMCA)’s trailblazer deeper devolution deal that was published in March of this year credits “the great success of Birmingham and the WMCA hosting the 2022 Commonwealth Games” in setting out plans for Government and the WMCA to collaborate on a proposal for the West Midlands to bid to host the 2027 World Intelligent Transport Systems Congress, alongside intentions to “strengthen and deepen” the partnership between WMCA and DBT ix . This indicates that the immediate success of the Games is also likely to strengthen the region’s hand in negotiating for future devolved funding from central Government. Regional actors have already demonstrated their commitment to levelling up by securing around £70m of unspent Commonwealth Games funding from Government to realise the Games’ legacy ambitions, in particular boosting its trade and tourism sectors and it demonstrates a real vote of confidence from Government to deliver for the citizens of the West Midlands.

Finally, the reinvestment of funding in the city region will further prime the West Midlands to maximise the benefits of HS2 when construction of Phase One is likely to be completed at the start of 2032. The region is already benefitting from the transformative impact of the project, with 8,800 people currently working on HS2 in the West Midlands and with £1.7bn worth of projects gone to businesses in the West Midlands. Once delivered in full, the project is expected to create 175,000 jobs for the region x– maintaining and building upon the momentum created by the 2022 Commonwealth Games is going to be essential to realising this ambition and enabling residents to access these new opportunities.

3. Economic Recovery & Growth

With the regional economy hit by the twin headwinds of Brexit and Covid-19, the WMCA’s West Midlands Plan for Growth sets out a path to return to the growth trajectory of 2009 to 2019 which saw the West Midlands as the fastest growing region outside of London. The Plan for Growth focusses on driving prosperity through enhanced transport investment, housing and land investment, new approaches to regeneration, tackling skills gaps, working with overseas investors and realising the region’s net zero ambitions. The plan also identifies eight sector clusters which are seen as being key to the region’s future prospects: manufacturing electric vehicles, modern and low carbon utilities, logistics and distribution, manufacturing low carbon homes, professional and financial services, health and medical technology, aerospace and creative content production.

There are clear complimentary and strategic alignments of the Plan for Growth with the legacy ambitions of the Commonwealth Games. Firstly, unspent Commonwealth Games funding was used to bolster the strategic ambitions for the Plan to Growth. The WMCA developed a Commonwealth Games Legacy Enhancement Fund to invite high-growth potential businesses, including those in Games supply chains, to join an accelerator programme. The overall aim of this programme is to contribute to the development of the clusters listed above and ultimately, create up to 45,000 new jobs xi. Secondly, an important part of the BATP’s investment activity is closely aligned with the West Midlands’ priorities for growth in sectors such as future mobility, data-driven healthcare, creative technologies, modern business services, the sports economy and e-commerce and tourism. From an events perspective, hosting the inaugural Commonwealth Esports Championships and Commonwealth Esports Forum will only add to the region’s pre-eminence in this field.

However, there are challenges associated with delivering growth in these clusters. Research gathered as part of the West Midlands and Warwickshire Local Skills Improvement Plan revealed that the West Midlands lags significantly behind the rest of the UK’s basic digital skills xii –despite reportedly having the country’s fastest growing tech sector. The strategic alignment of the legacy of the Games with the WMCA’s devolved powers over Adult Education funding has allowed the region to maximise jobs and skills opportunities from the Games; in 2021, £1.1 million was designated to provide higher level skills training to ensure individuals and companies were ready for the Games and build longer term structures for growth.

Furthermore, initiatives such as the Jobs and Skills Academy, which acted as an umbrella for all employment and training programmes linked to the Games played an important part in strengthening the talent pool of the local workforce, strengthening their skillsets and boosting employment opportunities. Regional stakeholders should learn from this model and where appropriate, look to replicate it to help to tackle the skills gaps which exist in the targeted growth clusters.